Derivative trading has been amongst us ever since the ancient times. Circa 1700 BC, Jacob purchased a type of derivative called an ‘option’ by paying seven year’s labour for the right to marry Laban’s daughter, Rachel.
Instead the old man tricked Jacob into marrying his eldest daughter Leah, and Jacob then served another seven years in exchange for the right to marry his initial choice, Rachel, as well, probably because there was no ‘central counterparty’ to handle the ‘credit risk’.
